One of the things they do is buy and sell out of t
Post# of 75348
(Total Views: 335)
Posted On: 03/09/2017 11:02:17 AM
One of the things they do is buy and sell out of their own inventory of shares of a particular stock and make money (markup if you will) on the float.
Example MM has 500000 shares of RMHB at .105 as price goes up - buyer bids for 50k shares at .106 and they sell the 50k out of their inventory and put a bid back in to replenish the stock.
Works a lot like a gas station where the price is based on last in first out accounting. (ie market says oil goes up so petro goes up and they fill tanks at higher cost and sell based on that cost even though the much of the gas in the tanks were purchased much less than recent price hike)
Example MM has 500000 shares of RMHB at .105 as price goes up - buyer bids for 50k shares at .106 and they sell the 50k out of their inventory and put a bid back in to replenish the stock.
Works a lot like a gas station where the price is based on last in first out accounting. (ie market says oil goes up so petro goes up and they fill tanks at higher cost and sell based on that cost even though the much of the gas in the tanks were purchased much less than recent price hike)
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